Calmness in currency markets

By @ibtimes on

After the busy week is coming to an end, we see that the currently there are slight movement in the currencies markets as for major currencies, we see there is low volume according to the one-hour volume indicator, while the Dollar Index, which measures strength of the dollar versus six major currencies, is currently declining trading at 81.47 while recording a high of 81.57 and a low of 81.19.

The euro is on the rise as exports in Germany rose the most in eight months, and while Germany is the biggest contributor to euro zone's GDP, investors become optimistic as higher exports means higher growth levels in the nation, which therefore will help end the euro zone step out of recession. Also the euro was supported as Greece posted their deficit narrowed and that this was without the new measures about to be applied by the government. The EUR/USD is being traded at 1.3366 above the support of 1.3350 and below the resistance of 1.3410, as for the pair recorded a high of 1.3417 and a low of 1.3341.

The pound today rallied versus the dollar as the UK economy released its producer prices showing that it rose the most in almost two years as a result of higher raw material prices, which meant that the BoE might be the first major bank to raise interest rates which boosted the pound in the markets. The GBP/USD is currently trading at 1.5322 between the support of 1.5300 and the resistance of 1.5380 while recording a high of 1.5390 and a low of 1.5266.

From the optimism in the markets, investors are buying higher yielding assets versus lower assets, which is why we see the stock markets climb next to the higher yielding currencies, therefore the appeal of the yen is decreased which is why it is slipping versus the dollar. The pair is currently trading at 93.57 above the support of 92.90 and below the resistance of 94.00 while recording a high of 93.77 and a low of 93.32.

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